What is meant by a feasibility study for a project:
We mean the set of steps that we take in order to determine the viability of a project and to start investing in it. This study includes studying the idea or project from all economic, legal, social and marketing aspects and determining the expected returns and the expected costs to achieve these returns. Accordingly, the report is decided on whether this project is valid for work in it or must be retracted.
Usefulness of a feasibility study:
The feasibility study achieves many benefits for investors, the most important of which may be to protect the capital from placing it in a project that is not practically viable or economically losing.
As we mentioned earlier, after doing the feasibility study, it is possible to determine the project’s viability on the ground. The feasibility study gives the investor an idea of the expected changes in the market during the project implementation period.
It is also useful in making decisions when presenting more than one project to the investor.
Based on this, he will be able to understand the costs necessary to start the project, the expected profits and the time required to recover his capital, and from there he can decide the project in which he will put the capital.
Types of feasibility study:
The feasibility study is divided into two parts
Initial feasibility study:
in which the project idea, the commodity it provides, and the market need for such a commodity are studied, and accordingly, the project is continued and the next stage is moved or canceled.
Detailed feasibility study:
It includes studying the project from all economic, legal, technical and marketing aspects, and we will give a brief explanation about it.
Legal feasibility study of the project:
Through which the project compatibility of the legal regulations of the country in which it is located is studied through studying labor and labor laws, tax laws, control instructions and laws related to investment.
Marketing feasibility study of the project:
It is one of the important stages in studying the feasibility of any project. In it, the materials needed for production are determined, the external market is studied to ensure that the product is marketed after completion, and areas that need to be focused on in marketing and distribution are identified.
Also defining the advantages of the product from similar products in the market. And proposing new and innovative ideas for marketing the product.
The marketing study consists of three stages: studying the market and its size
studying the demand for the product by describing it and comparing it with the products on the market
and studying the target segments for the last stage, which is the study of the position of competitors in the market and the extent of their strength and prices that they provide for the product and their propaganda campaigns to extract The best way to promote the product.
Technical feasibility study of the project:
As this study is considered one of the most important parts of the feasibility study and relies in its analyzes on the previous sections and their results and helps in determining the method of production and its style and the needs of the project and choosing the project site.
Project economic feasibility study:
Through which the necessary information about the project is collected to study it, determine the expected costs and returns, and analyze all this information to reach a decision about the effectiveness of this project or not.
One of the advantages of this study is its ability to predict the future of the project by relying on an analysis of the project needs over a specific period of time and the ability to A study of the expected costs and expenses during the consecutive time periods of the project from its launch phase until obtaining approvals and starting implementation and marketing.
The project stages are also characterized by interconnection, which gives the study more reliability that enables its owner to explain the project. Ah in detail when you need to obtain external financing.
Aspects through which we provide project study services:
- Commercial sector
- Industrial sector
- Incorporation of companies
- Service sector
- The tourism sector
- The educational sector
- Design and decoration
- The construction sector
Project study phases:
- It starts from taking information from the client about the project that wants to be executed and then evaluating the project and its viability
- Submit the technical and financial offer
- Signing of the contract
- Handing over the project to the concerned department
It is followed by a study of the Turkish market for such a type of project. Upon completion of this stage
we will have studied the economic feasibility of this project, which means studying the viability of implementing the project and achieving financial profit from it.
Then we move to the next stage, which is to develop a plan for the project and start from putting start-up costs from finding the right place and calculating the costs of other supplies
legal papers, licenses and furniture.
Then calculate the expected costs for marketing and research, employee wages, and advertising and advertising costs.
After determining the value of the costs and expenses necessary to start the project, some of which we will need to spend only once
we must set expectations for the profits and financial flows that the customer will receive after starting the implementation of the project, which also includes studying the projected sales expectations and costs of production lines
The expected period to recover the money invested in the project is also determined, and the shorter this period, the greater the effectiveness of this project
Follow up the mentioned stages in the technical, legal and marketing feasibility study
Preparing the technical offer for delivery
The stage of checking the offer and verifying the approval of the customer
Delivery and follow-up with the customer as per the agreement